This complaint coming up before us for hearing on 22-04-2014 in the presence of Sri A.Raghuram, advocate for complainant and of                           Sri P.Sanath Kumar, Advocate for  opposite parties upon perusing the material on record and having stood over till this day for consideration this Forum made the following:-

O R D E R

Per Smt. T.SUNEETHA , MEMBER

            The complainant filed this complaint u/s 12 of the Consumer Protection Act seeking directions on the opposite party to pay a sum of Rs.1,15,000/- toward compensation (Rs.1,00,000), mental agony(Rs.10,000/-), legal expenses (Rs.5,000/-).

2.   In brief the averments of the complaint are these:

          The complainant took a policy from the 1^st opposite party bearing No.R-AP-VJ-CWLA-195163 on 01-03-2005 and paid premium of Rs.140/- per month till January, 2010 to the 1^st opposite party.  Thereafter the 2^nd opposite party did not accept the payment of the premium by the complainant and took insurance policy bond and pass book stating that the policy under CWLA will be converted to EA and the complainant would be given new bond and new pass book.  In February, 2010 the complainant was informed by the 2^nd opposite party that the bond and the pass book of the complainant were sent to Divisional Office, Guntur, and required Rs.783/- towards premium of the policy.  The complainant paid the said amount in June, 2010.

        The complainant received a regd.letter dated 18-07-11 from the Central Public Information Officer, and Assistant Director (Staff), O/o. Post Master General, Vijayawada, stating that there was no CWA/70 plan in RPLI.  However, some policies were inadvertently accepted as CWA/70 initially as there was no security check regarding acceptance of CWA/70 policies in the locally developed RPLI software which was used in postal Divisional Offices for acceptance of RPLI policies before the introduction of Web based software and the data was migrated to Web based software in 1/2009 consequent on its introduction.

        It is further stated that, on receipt of the complainant’s  application, the conversion of policy from CWA/70 to EA/50 has been processed in the web based software. The data was fed into the system to get calculation sheet for conversion.  However, the conversion calculation sheet was not generated. The matter was taken up with the PLI directorate to provide the facility for conversion of CWA/70 to EA/50.  The PLI Directorate has replied that there was no such CWA/70 plan in RPLI since the beginning of the insurance scheme and directed to contact the concerned circle DDM,PLI and the matter was referred to DDM, PLI, A.P.Circle, Hyderabad.  On receipt of clearance from the Directorate, the complainant’s policy will be converted from CWA/70 to EA/50.

        The complainant got issued a regd. Legal notice dated 13-01-13 to the 3^rd opposite party to return the premium amount to the complainant.  Legal notice was received by the 3^rd opposite party on 21-01-13 and kept quite.

        The opposite party neither settled the claim not refund the premium to the complainant which amounts to clear deficiency of service under the provisions of Consumer Protection Act.  Hence the complaint.

3.      Version filed by the opposite parties which is in brief as follows:p

            The complainant took Rural Postal Life Insurance convertible whole life policy on 01-03-05 for a sum of Rs.1,00,000/- with Guntur Division, Department of Posts.  The insured submitted application for conversion of the policy from CWA/70 to EA/50 on 21-04-10 through the Superintendent of Posts Offices, Guntur and the same was submitted to 3^rd opposite party for conversion.  The 3^rd opposite party intimated that certain discrepancies noticed between the approved premium table of Postal Life Insurance/ RPLI premiums that are being collected were brought to the notice of Postal Directorate, New Delhi.  The Directorate vide letter No.29-12/2001-LI(Vol-III) dated 28-01-08, issued instructions to follow the PLI/RPLI Premium tables available in the India Post Website.  Accordingly, instructions were issued to all the Postal Divisions on 27-02-2008 and not to accept the CWA-70 years policies.  But the CWA/70 policies were accepted prior to issue of the Directorate orders dated 28-01-08.  After completion of 5 years and before 6 years, the insured will be applying for Conversion of CWA/70 years to EA/50 years.   The data was fed into the System to get the conversion calculation sheet in web based software.  But the conversion calculation sheet was not generated.  The matter was taken up with the PLI Directorate, New Delhi to provide the facility for conversion of the policies from CWA/70 to EA/50.  The data was migrated as early as in January, 2009, before the Insured.  Sri M.Rahaman Baig applied for conversion.  The matter was already taken up with the DPS (HQ), Circle Office, Hyderabad on 25-05-2011 and again the matter was referred to the PLI Directorate, New Delhi on 08-04-2013 by the Postmaster General, Vijayawada Region (Opposite party :3).  In response to this, the PLI Directorate has given reply as follows (Vide Directorate lr.No.6-03/2008-L1(AP) dated 16-04-13).

a).  Since the inception of RPLI, there is no Plan of CWA-70 and as such the web based software has correctly not allowed conversion of such policies data of which was migrated from the old system to present system.

b). To furnish number of those CWA-70 policies in R/o. which the insured have paid premium as per CWA-60 for deletion by the PLI Directorate.  So that the Regional Offices may re-enter the data of such policies as CWA-60 Plan and then convert those policies into EA as per the request of the insured and the insured was addressed on 03-09-2013 to pay the arrears of premium and submit receipts to convert the policy from CWA-70 to EA-50.

 The insured has not submitted the receipts for conversion.  After receipt of the same the case will be settled immediately.

4.      The complainant and 1^st opposite party filed their respective affidavits. Exs.A-1 to A-29 were marked on behalf of the complainant and   no documents were marked on behalf of opposite parties.

5.   Now the points that arose for consideration in this complaint are:

1. Whether there is any deficiency of service on the part of opposite parties?

1. To what relief?

6.      POINT NO.1: - The allegation of the complainant is that opposite parties having received difference (apart from monthly premium under CWA/70) premium payment from the complainant towards conversion of CWLA policy to EA/50 policy opposite parties neither refunded premium amount nor converted the policy. The complainant expressed his inability to pay the premiums to conversion to the opposite parties in the affidavit dated 10-03-2014.

        The correspondence made by the 3^rd opposite party (Ex-A28) revealed that no plan of CWA/70 have been existed in RPLI since inspection of insurance scheme. The opposite parties received premium payments for a plan which is not in scheme.

        The 3^rd opposite party informed about the directions given by the PLI Directorate New Delhi to the complainant and required arrears of the premium and receipts from the complainant to enable the  conversion , through letters    dated  03-09-2013 and 21-10-2013 after the complainant filling the complaint  in the Forum ie; after 14-05-2013.

        Opposite parties having received premium and difference premium under EA policy as per the receipts (Exs.A-9 to A-24) have failed to convert the policy to EA policy. The issue of conversion of this CWLA policy to EA policy was raised in the year 2010 when the 1^st opposite party received difference premium payment of Rs.783/-           (Ex-A29)  but the  opposite parties have given  proper reply on             03-09-2013. The opposite parties made the complainant to wait for almost three years   which   is nothing but the deficiency of service on their part.

         Receiving the payments from the complainant for a plan which is not in effect is sheer negligence on the part of opposite parties.  Therefore, the opposite parties are liable to compensate the complainant.  This point is answered in favor of the complainant.     

7.      POINT NO.2:  The relief sought by the complainant is Rs.1,15,000/- towards compensation, mental agony and costs. Since the complainant have already expressed his inability to pay the premium amount the opposite parties shall refund the premium amount and difference amount of premium for conversion collected from the complainant .

8.      In the result, the complaint is allowed in part in terms as            indicated below :

1.     The opposite parties are directed to refund Rs.8,400/- (Rupees eight thousand four hundred) premium amount collected from the complainant along with the interest @ 9% p.a. from the last payment date as per the pass book in 30-03-2010 (Ex.A-1) till realisation to the complainant.

2.   The opposite parties are further directed to refund Rs.783/- (Seven hundred and eighty three only) collected as difference premium amount from the complainant along with interest @ 9% p.a. from the date of payment i.e., 15-07-10 (Ex.A-24) till realization  to the complainant.

3.     The opposite parties are further directed to pay an amount of Rs.5,000/- (Rupees five thousand) towards compensation for mental agony to the complainant.

4.    The opposite parties are further directed to pay an amount of Rs.2,000/- (Rupees two thousand) towards legal expenses to the complainant.

        The above order shall be complied within six weeks from the date of receipt of this order, failing which the amounts ordered in item No.3 shall carry interest @ 9% p.a. till realization.

Typed to my dictation by Junior Steno, corrected by me and pronounced in the open Forum dated this the 30^th day of April, 2014.

Sd/-XXX                             Sd/-XXX                           Sd/-XXX

MEMBER                        MEMBER                       PRESIDENT

APPENDIX OF EVIDENCE

DOCUMENTS MARKED

For Complainant:

For opposite parties:    NIL

                                                                                                                                   Sd/-XXX

PRESIDENT

NB:   The parties are required to collect the extra sets within a month after receipt of this order either personally or through their advocate as otherwise the extra sets shall be weeded out.